How to Get a Life Insurance License in Alabama

Getting your Alabama life insurance license is the first step towards becoming a life insurance agent in the state.

The Alabama Department of Insurance (ALDOI) requires you to complete a six-step process to become a life insurance agent in Alabama — from taking the life insurance exam to applying for a license.

These steps will take a few weeks to complete so we recommend you bookmark this page so you can use it as a reference throughout the process.

Life Insurance License Alabama

Obtaining your Alabama life insurance license isn’t difficult. Just follow these five steps to start your journey toward becoming a life insurance agent. Once you earn this license, check out our guide on how to get your Alabama property and casualty (P&C) license as well.

Step 1: Complete an Alabama Insurance Pre-license Course

Before you take the Alabama life insurance licensing exam, it’s important to make time to acquire the knowledge you’ll need to pass this exam on your first attempt. Completing a pre-license education course will equip you with the necessary information and tools you’ll need to prepare for your exam.

In Alabama, you must take a 20-hour course on life insurance. After completing the course, you’ll need to present a valid photo ID and an original certificate of completion from the approved prelicensing education provider when you arrive to take your exam. The pre-license course certificate is only valid for 12 months.

A pre-license education course provides very specific industry knowledge that will be tested during the exam. There is very little information on the test that could be considered “common sense”. Pre-license education courses are self-paced and include study materials like practice exams and flashcards.

Beyond helping you effectively prepare for and pass the life insurance licensing exam on your first try, taking a pre-license education course also will give you a solid understanding of your duties as a life insurance agent.

Step 2: Take the Alabama Life Insurance Licensing Exam

After you complete a prep course and your own independent studying, it’s time to take the Alabama life insurance exam.

Alabama uses The University of Alabama College of Continuing Studies as its official exam provider for registering and administering licensure exams.

The Alabama life insurance exam outline contains a total of 125 scored questions that includes three sections: the general section deals with basic life insurance product knowledge, the life insurance section contains life policies and provisions, and the state section covers laws, regulations, and practices specific to Alabama.

You’ll have 150 minutes to complete the exam. The Alabama life insurance exam fee is $50, which you must pay at the time of reservation by credit card, debit card, or voucher. The exam is a proctored test, meaning an official proctor will closely monitor you in a controlled environment.

If you happen to fail the Alabama life insurance exam, you’re prohibited from retaking the life insurance exam for 90 days. If you fail the exam four times, you’ll have a 180-day waiting period for each subsequent exam.

Step 3: Get a Fingerprint-Based Background Check

After you take the Alabama life insurance exam, you must get a fingerprint-based background check from Gemalto. The fingerprinting fee is $48.25. Your fingerprint results only remain in the state system for 30 days. If you wait longer than this to apply for your license, you’ll need to redo your fingerprint-based background check and pay the fee again. That means you should apply for your license within 30 days of having your fingerprints taken.

For more information, call the ALDOI at (334) 241-4126.

After completing your fingerprint-based background check, you must submit your license application within one year of passing the licensing exam. If you fail to do so, you’ll need to retake the exam.

Step 4: Complete an Alabama Life Insurance License Application

Once you pass the life insurance exam and complete the background check, you can apply for your Alabama life insurance license. The application fee is $80, and the NIPR will charge a $5.60 transaction fee for a total of $85.60.

ALDOI will issue a life insurance license to individuals who are at least 18 years old and have passed the proper licensing exam. You should submit your completed license application within 12 months of passing the exam.

To apply for a life insurance license in Alabama, make sure you comply with the insurance licensing requirements as defined under the Alabama Insurance Code. 

Send any questions or supporting documents to ProducerLicensing@insurance.alabama.gov.

Step 5: Submit Your Proof of Citizenship

Alabama will verify the citizenship of all its applicants. Within ten (10) days of submitting your license application, Alabama requires that you must submit proof of citizenship (in accordance with the Alabama Citizen Protection Act). If your file is not received within ten (10) days after submission, your application will be declined.

You will use one of the sixteen different identifiers (such as your official driver’s license or other state ID) listed on ALDOI before your license is issued. You must upload a file that includes the front and the back of your identification. If you have a question about which forms of ID will work, and which will not, please contact the ALDOI at (334) 241-4126 or email the License Department.

Step 6: Watch for Your Application Results

After you complete the previous five steps, the ALDOI License Department will review your application and background check. It reviews filings in the order it receives them, and this process usually takes two days or more from the date you mail your application.

Once your application review is complete, the ALDOI License Department will email you with its decision or ask you to provide more information.

You can print your license from the NIPR website. There’s no charge to create an account or print a license. If you don’t remember your license number, you can find it by using the National Association of Insurance Commissioners (NAIC) State Based Systems (SBS) Alabama Lookup tool.

Congratulations!

You’re now ready to get started as a life insurance agent in Alabama.

Steps After Securing Your Alabama Life Insurance License

Once you complete the above steps and have your Alabama life insurance license, there are a few steps you’ll need to take in order to a) excel as an insurance agent, and b) maintain your life insurance license.

Let’s take a brief look at these below.

Obtain All Relevant Securities Licenses

If you’re planning on selling advanced life insurance products, you’ll likely need to pass the Securities Industry Essentials (SIE) exam and obtain the relevant securities licenses (e.g., Series 6, 7, and 63).

For more information on this step, you can have a look at our in-depth Securities Licensing overview.

Choose a Means of Selling

You’ll have to decide whether you’d prefer working as a captive agent employed by one company, or running your own business as an independent agent.

If you’re just starting out, you’ll likely benefit from working as a captive agent, but this will ultimately depend on your personal aspirations and opportunities.

Develop Your Marketing Approach

To succeed as an insurance agent, you’ll need to adopt a marketing approach that’s effective for you.

We recommend finding and sticking to a niche, as well organizing all client appointments for the start of your week. This is because this can improve your overall client conversions.

Keep Your License Valid

In Alabama, you will need to renew your license every two years in order to remain in good standing.

To do this, you’ll need to complete 24 hours of continuing education (CE), three of which should relate to Ethics training.

Keep in mind that if you are licensed for less than twelve months at the time of your first renewal, you will not be required to complete any educational requirements and will instead be able to claim a CE exemption during your renewal submission through NIPR.

To avoid delays in renewing your license, we recommend completing your continuing education hours at least 75 days before your license expires.

Note: Your continuing education provider will report the successful completion of your CE to the NAIC SBS within 10 days of completion. The renewal fee for this is $70, with a late fee of $50 being imposed.

Alabama Department of Insurance Contact Information

Mailing Address

Attn: Licensing Division
P.O. Box 303351
Montgomery, AL 36130-3351

Phone: (334) 241-4126

Email: ProducerLicensing@insurance.alabama.gov

Website: https://www.aldoi.gov/

License Search: Alabama Insurance License Lookup